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Why Has U.S. Stock Ownership Doubled Since the Early 1980s? Equity Participation Over the Past Half Century

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  • John V. Duca
  • Mark Walker

Abstract

The U.S. stock ownership rate doubled between 1983 and 2001 but remains below predictions of some equity participation models. Consistent with calibration studies by Heaton and Lucas (2000) and Gomes and Michaelides (2005), mutual fund costs and indicators of background labor risk are significantly related to stock ownership over 1964-2019. Coefficient estimates and continuous data on driving variables can be used to create a continuous proxy for stock ownership, which could help researchers gauge the effects of shocks that are transmitted via equity participation. Typically omitted asset transfer costs can help analyze other aspects of household portfolio behavior.

Suggested Citation

  • John V. Duca & Mark Walker, 2022. "Why Has U.S. Stock Ownership Doubled Since the Early 1980s? Equity Participation Over the Past Half Century," Working Papers 2222, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddwp:95139
    DOI: 10.24149/wp2222
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    References listed on IDEAS

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    More about this item

    Keywords

    equity participation; stocks; mutual funds;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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